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- Tokyo, by making a bill of exchange, is liable to Kyoto, an endorsee who presented the note for payment. What is the liability of Tokyo to Kyoto? a. Unconditional b. Primary c. Secondary d. Conditionalwhich shall be recognized for each item when foreign currency gain or loss that arises from translation of foreign currency denominated transaction to functional currency? a. inventiry b. interest expense c. accounts receivable d. unearned revenuePlease explain and analyze the effect of major differences between IFRS and U.S. GAAP related to the financial reporting of a specific category of account (e.g. current liabilities, provisions, employee benefits, share-based payment, income taxes, revenue, financial instruments, leases).
- Please focus on Goodwill when you answer the question below and when you apply an example to it. The question: Explain and analyze the effect of major differences between IFRS and U.S. GAAP on Financial statements in terms of Definition, recognition, Measurement, and alternative methods of measrument (if allowed), the requirements, the presentation of the items in financial statements, and disclosure in the notes of the financial statements.Question 1 (a) Compare and contrast the letters of credit and performance bonds. b) Discuss the following documents as used in international procurement and clearly show how they are used for financing international transactions bill of lading insurance policy Bills of exchange, Letters of credit Promissory notes Performance bonds c) Discuss the doctrine of strict compliance as applied to letters of credit and show how it is different from the concept of autonomy of letters of credit d) Compare and contrast the various modes of paymentInternational accounting standards differ from U.S. Generally Accepted Accounting Principles in that International standards Select one: a. state that firm sale or purchase commitments may not be treated as a hedged transaction. b. permit firm sale or purchase commitments to be accounted for as either fair value hedges or cash flow hedges. c. require that firm sale or purchase commitments are accounted for as fair value hedges. d. require that firm sale or purchase commitments are accounted for as cash flow hedges.
- Discuss similarities and differences between the accounting treatment for U.S. GAAP and IFRS if any from the topic you selected.A subsidiary’s functional currency is the U.S. dollar. The exchange rate used to convert depreciation expense for a building on the subsidiary’s financial statements from its local currency unit to the U.S. dollar is the: Select one: a. Current rate b. Historical rate c. Average historical rate d. Weighted average rateWhich of the following is not a part of Other Comprehensive Income? Group of answer choices foreign currency translation adjustments gains on the sale of equipment unrealized gains on available-for-sale debt securities unrecognized pension costs
- Explain the requisites of the negotiability of a bill of exchange.In presenting foreign currency denominated transactions to the functional currency of the entity, which of the following statements is correct? a. When nonmonetary items are translated from foreign currency to functional currency in the financial statements, foreign currency gain of loss will be recognized. b. Monetary items shall be initially recognized and measured at the exchange rate prevailing at the end of the reporting period. c. Foreign currency gain or loss arising from translation of the foreign currency denominated items to functional currency shall be presented in other comprehensive income with reclassification adjustment to profit or loss if realized. d. Foreign currency denominated income statement accounts shall be translated using the exchange rate at the date of transaction.Exchange difference arising from the translation of financial statements of a foreign operation into the presentation currency of the reporting entity shall be accounted for as Group of answer choices Translation gain or loss as a component of profit or loss Transaction gain or loss as component of other comprehensive income Translation gain or loss as a component of other comprehensive income Transaction gain or loss as component of profit or loss